The hedging has no downside risk as long as production is more than enough to fulfil the hedge. It's not going to bankrupt us, like it could if production was not enough to fulfil the hedge.
However, the hedge limits the upside of the gold price by 1/3.
- A rise in gold price is a positive. It has no effect on the hedge, and the rise benefits the 2/3 of production that is not hedged.
- A fall in gold is a negative only for the 2/3 production that is unhedged. It does not affect the hedge sale price. If gold fell severely (below the hedge price), then the hedge turns into a positive.
- The hedge is neutral for now, as it's already priced in, and gold price movements will not really effect it. But production number will affect it (making it more or less significant, by changing the unhedged deliveries number).
- The way to reduce the impact of the hedge is to ramp up strongly and successfully. That way, the hedge can go from 1/2 to 1/3 to 1/4 of production, until the hedge finally runs out.
- Forums
- ASX - By Stock
- BGL
- Takeover
Takeover, page-75
-
-
- There are more pages in this discussion • 8 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add BGL (ASX) to my watchlist
(20min delay)
|
|||||
Last
$1.30 |
Change
0.005(0.39%) |
Mkt cap ! $1.657B |
Open | High | Low | Value | Volume |
$1.27 | $1.30 | $1.25 | $9.627M | 7.524M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 400 | $1.29 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$1.30 | 158111 | 3 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
2 | 11395 | 1.280 |
3 | 40579 | 1.275 |
1 | 9795 | 1.270 |
3 | 11335 | 1.265 |
2 | 13767 | 1.260 |
Price($) | Vol. | No. |
---|---|---|
1.300 | 8000 | 2 |
1.310 | 92795 | 5 |
1.315 | 9795 | 1 |
1.320 | 125210 | 4 |
1.325 | 19646 | 2 |
Last trade - 16.10pm 04/10/2024 (20 minute delay) ? |
Featured News
NEWS
Breakthrough programs slash healthcare events, driving a significant A$1.8M+ annual revenue boost
CC9
Chariot Corporation (ASX:CC9) refines Black Mountain strategy, launching Pilot Mine to seize U.S. lithium opportunity
LU7
Discover the strong preliminary feasibility of the Bécancour Lithium Refinery, showcasing resilience in a low pricing environment and a strategic plan to capitalize on future price recoveries
BGL (ASX) Chart |